Lionfish Is an Aquatic Invasive Species in the Southeastern U

question 112

Multiple Choice

Lionfish is an aquatic invasive species in the southeastern U.S.and the Caribbean.Current removal policies focus on harvesting the lionfish for human consumption.However,a fishing license is required to fish in most southern states.Assume that the supply of fishing licenses is Qs = 50 + 0.05L + 40P,where and P = price of a fishing license,and the demand for fishing licenses is .What is the equilibrium price and quantity of fishing licenses when L = 10,000?

• A) P = $8.5, Q = 890
• B) P = $13, Q = 620
• C) P = $13.5, Q = 590
• D) P = $13.5, Q = 591

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Definitions:

Equilibrium Payoff

In game theory, the reward or outcome each player expects to receive when all players choose strategies that lead to a stable state where no player can benefit by changing their strategy alone.

Advertising Strategy

An advertising strategy is a plan designed to reach and persuade potential customers to buy a product or service or take any action desired by the advertiser.

Nash Equilibrium

A concept in game theory where players reach an outcome from which no player can benefit by unilaterally changing their strategy.

Cooperative Strategy

A collaborative approach undertaken by businesses or organizations to achieve mutual benefits or objectives through sharing resources, capabilities, or markets.